| 26 March |
How To Obtain Guaranteed Car Finance |
If you have been dreaming of going home with that dream car but have been disillusioned by the constant disapprovals that you have been getting from most finance institutions, then you are just in luck with guaranteed car finance. There are car dealerships and lenders that are willing to finance buyers notwithstanding their credit rating.
Prior to the advent of guaranteed car finance, people with bad credit had no choice but to purchase their vehicles from specialised garages that offered limited variety. But with guaranteed car finance, you have the option to buy your dream vehicle from dealership of your choice.
The following are measures that you may want to undertake in order to obtain the best deal in guaranteed car finance.
Work On Your Credit Rating
Know your credit rating and try to improve on items that you have control over. Settle outstanding dues if you must and make sure that all items in your credit records are accurate. Seek to have your previous lenders change your credit report.
If you have absolutely no credit history, try to build up your credit rating by purchasing a secondhand vehicle that is within your means using bad credit car finance or try a loan from a family member or a friend. When you pay off your loan prudently, you get a chance to secure a better deal on your next loan. You may even swap the vehicle for a better car within the loan term if your dealer permits.
Keep a Record of Supporting Documents
Keep a file of various proofs of payment such as lease contract, tax returns, receipts and statement of utilities. Organize your bank account statements and make sure that you have at least the last six months’ records at hand. These papers may be required by lenders as supporting documents to your loan application.
List Down Your Options
Take an inventory of available car financing companies and the services they offer. Check out local credit companies as well online dealerships. Note that local credit union may require that your application form is cosigned by a backer. On the other hand, some online dealerships offer discounts when you submit your application through their website. Moreover, some online companies have affiliate lenders and dealerships to process your application and that increase your chances for an approved loan.
However, be on guard for predatory credit companies. Take special concern on interest rates and fees and penalties. Note that aggregated interest and fees should always fall below the cost of the car.
Hold That Job
You would want to give lenders the impression that you can hold a steady job. So if you are looking at transferring to a new employment, hold it off until you have had your application approved. Lenders look into applicants’ employment history and find favorable those that are steadily employed to a particular job for at least 2 years. Obviously, you have to be earning sufficient salary in your current job to earn approval of your application.
Make a Deposit
If you are not successful in improving your credit rating, you may have to prepare about 10 to 20 percent of the total loan amount as a deposit. You may likewise trade in your used car if the dealer approves.